Latest news with #LynnSong
Qatar Tribune
16 hours ago
- Business
- Qatar Tribune
China's May export growth slows as tariffs take toll
Agencies China's export growth slowed down to a three-month low in May, official data showed on Monday, while shipments to the U.S. also plunged due to tariffs. Coupled with factory-gate deflation, which deepened to its worst level in two years, it pointed the pressure remained high on the world's second-largest economy on both the domestic and external fronts. U.S. President Donald Trump's global trade war and the swings in Sino-U.S. trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller-coaster ride and hobbled world growth. Underscoring the U.S. tariff impact on shipments, customs data showed that China's exports to the U.S. plunged 34.5% year-over-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade. Total exports from the Asian economic giant expanded 4.8% year-over-year in value terms last month, slowing from the 8.1% jump in April and missing the 5.0% growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of U.S. tariffs on Chinese goods which had taken effect in early April. 'It's likely that the May data continued to be weighed down by the peak tariff period,' said Lynn Song, chief economist for Greater China at ING. Song said there was still front-loading of shipments due to the tariff risks, while acceleration of sales to regions other than the United States helped to underpin China's dropped 3.4% year-over-year, deepening from the 0.2% decline in April and worse than the 0.9% downturn expected in the Reuters poll. Exports had surged 12.4% year-over-year and 8.1% in March and April, respectively, as factories rushed shipments to the U.S. and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world. While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high and negotiations are underway over issues ranging from China's rare earths controls to Taiwan. Trade representatives from China and the U.S. are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday. China's imports from the U.S. also lost further ground, dropping 18.1% from a 13.8% slide in Huang, economist at Capital Economics, expects the slowdown in exports growth to 'partially reverse this month, as it reflects the drop in U.S. orders before the trade truce,' but cautions that shipments will be knocked again by year-end due to elevated tariff levels. China's exports of rare earths jumped sharply in May despite export restrictions on certain types of rare earth products causing plant closures across the global auto supply latest figures do not distinguish between the 17 rare earth elements and related products, some of which are not subject to restrictions. A clearer picture of the impact of the curbs on exports will only be available when more detailed data is released on June 20. China's May trade surplus came in at $103.22 billion, up from the $96.18 billion the previous month. Other data, also released on Monday, showed China's imports of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds. Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a 500 billion yuan low-cost loan program, aimed at cushioning the trade war's blow to the economy.
Observer
a day ago
- Business
- Observer
China's exports slow as trade war takes toll
BEIJING: Chinese exports grew at a slower pace than expected in May, official figures published Monday showed, hours ahead of expected talks between Beijing and Washington aimed at easing a gruelling trade war. Imports fell more dramatically than expected last month, with weak domestic consumption in the world's number two economy highlighted by data earlier in the day revealing another month of falling prices. The 4.8 per cent year-on-year increase in overseas shipments last month was slower than the 8.1 per cent growth recorded in April, also falling short of the six per cent jump that was forecast in a survey of economists by Bloomberg. It comes as representatives from China and the United States are expected to meet in London on Monday for another round of high-stakes trade talks that markets hope will ease tensions between the economic superpowers. Monday's reading included a 12.7 per cent plunge in exports to the United States compared with April, when US President Donald Trump unveiled his eye-watering tariffs on China. May's exports to the United States also represented a year-on-year decline of more than one third -- the steepest slide since early 2020. In contrast, customs data showed shipments to Vietnam increased from the previous month. Those to other Southeast Asian countries including Malaysia, Thailand, Singapore and Indonesia all declined slightly after soaring in April, the figures indicated. "The acceleration of exports to other economies has helped China's exports remain relatively buoyant in the face of the trade war," wrote Lynn Song, chief economist for Greater China at ING, noting that shipments to Southeast Asian nations were up 14.8 per cent year-on-year. China's overall imports in May dropped 3.4 per cent year-on-year, coming up short of the 0.8 per cent decline forecast by the Bloomberg survey. Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the trade outlook "remains highly uncertain". He pointed to the impact of "frontloading", when overseas buyers increase shipments ahead of potentially higher tariffs. — AFP
Irish Times
a day ago
- Business
- Irish Times
Chinese exports to US plunge as tariffs bite
China's export growth slowed to a three-month low in May as US tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts. US President Donald Trump's global trade war and the swings in China-US trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller-coaster ride and hobbled world growth. Underscoring the US tariff impact on shipments, customs data showed that China's exports to the US plunged 34.5 per cent year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the Covid-19 pandemic upended global trade. Total exports from the Asian economic giant expanded 4.8 per cent year-on-year in value terms last month, slowing from the 8.1 per cent jump in April and missing the 5 per cent growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of US tariffs on Chinese goods which had taken effect in early April. READ MORE 'It's likely that the May data continued to be weighed down by the peak tariff period,' said Lynn Song, chief economist for Greater China at ING. Song said there was still front-loading of shipments due to the tariff risks, while acceleration of sales to regions other than the United States helped to underpin China's exports. Imports dropped 3.4 per cent year-on-year, deepening from the 0.2 per cent decline in April and worse than the 0.9 per cent downturn expected in the Reuters poll. Exports had surged 12.4 per cent year-on-year and 8.1 per cent in March and April, respectively, as factories rushed shipments to the US and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world. While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high and negotiations are under way over issues ranging from China's rare earths controls to Taiwan. Trade representatives from China and the US are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday. China's imports from the US also lost further ground, dropping 18.1 per cent from a 13.8 per cent slide in April. Zichun Huang, economist at Capital Economics, expects the slowdown in exports growth to 'partially reverse this month, as it reflects the drop in US orders before the trade truce,' but cautions that shipments will be knocked again by year-end due to elevated tariff levels. China's exports of rare earths jumped sharply in May despite export restrictions on certain types of rare earth products causing plant closures across the global auto supply chain. The latest figures do not distinguish between the 17 rare earth elements and related products, some of which are not subject to restrictions. A clearer picture of the impact of the curbs on exports will only be available when more detailed data is released on June 20. China's May trade surplus came in at $103.22 billion (€90 billion), up from the $96.18 billion the previous month. Other data, also released on Monday, showed China's imports of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds. Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a low-cost loan program, aimed at cushioning the trade war's blow to the economy. – Reuters (c) Copyright Thomson Reuters 2025
Gulf Today
a day ago
- Business
- Gulf Today
China's export growth slows last month as tariffs take toll
China's export growth slowed to a three-month low in May as US tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts. US President Donald Trump's global trade war and the swings in Sino-US trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller coaster ride and hobbled world growth. Underscoring the US tariff impact on shipments, customs data showed that China's exports to the US plunged 34.5 per cent year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade. Total exports from the Asian economic giant expanded 4.8 per cent year-on-year in value terms last month, slowing from the 8.1 per cent jump in April and missing the 5.0 per cent growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of US tariffs on Chinese goods which had taken effect in early April. 'It's likely that the May data continued to be weighed down by the peak tariff period,' said Lynn Song, chief economist for Greater China at ING. Song said there was still front-loading of shipments due to the tariff risks, while acceleration of sales to regions other than the United States helped to underpin China's exports. Imports dropped 3.4 per cent year-on-year, deepening from the 0.2 per cent decline in April and worse than the 0.9 per cent downturn expected in the Reuters poll. Exports had surged 12.4 per cent year-on-year and 8.1 per cent in March and April, respectively, as factories rushed shipments to the US and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world. While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high and negotiations are underway over issues ranging from China's rare earths controls to Taiwan. Trade representatives from China and the US are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday. China's imports from the US also lost further ground, dropping 18.1 per cent from a 13.8 per cent slide in April. Zichun Huang, economist at Capital Economics, expects the slowdown in exports growth to 'partially reverse this month, as it reflects the drop in US orders before the trade truce,' but cautions that shipments will be knocked again by year-end due to elevated tariff levels. China's exports of rare earths jumped sharply in May despite export restrictions on certain types of rare earth products causing plant closures across the global auto supply chain. The latest figures do not distinguish between the 17 rare earth elements and related products, some of which are not subject to restrictions. A clearer picture of the impact of the curbs on exports will only be available when more detailed data is released on June 20. China's May trade surplus came in at $103.22 billion, up from the $96.18 billion the previous month. Other data, also released on Monday, showed China's imports of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds. Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a 500 billion yuan low-cost loan programme, aimed at cushioning the trade war's blow to the economy. China's markets showed muted reaction to the data. The blue-chip CSI300 Index climbed 0.29 per cent and the benchmark Shanghai Composite Index was up 0.43 per cent. Producer and consumer price data, released by the National Bureau of Statistics on the same day, showed that deflationary pressures worsened last month. The producer price index fell 3.3 per cent in May from a year earlier, after a 2.7 per cent decline in April and marked the deepest contraction in 22 months. Cooling factory activity also highlights the impact of US tariffs on the world's largest manufacturing hub, dampening faster services growth as suspense lingers over the outcome of US-China trade talks. Retail sales growth slowed last month as spending continued to lag due to job insecurity and stagnant new home prices. These headwinds were evident in China's car sales for May, which grew 13.9 per cent year-on-year, slowing from a 14.8 per cent increase the previous month, data from the China Passenger Car Association showed. Sluggish domestic demand and weak prices have weighed on China's economy, which has struggled to mount a robust post-pandemic recovery amid a prolonged property slump and has relied on exports to underpin growth. Reuters
Yahoo
a day ago
- Business
- Yahoo
China's exports slow as trade war takes toll
Chinese exports grew at a slower pace than expected in May, official figures published Monday showed, hours ahead of expected talks between Beijing and Washington aimed at easing a gruelling trade war. Imports fell more dramatically than expected last month, with weak domestic consumption in the world's number two economy highlighted by data earlier in the day revealing another month of falling prices. The 4.8 percent year-on-year increase in overseas shipments last month was slower than the 8.1 percent growth recorded in April, also falling short of the six percent jump that was forecast in a survey of economists by Bloomberg. It comes as representatives from China and the United States are expected to meet in London on Monday for another round of high-stakes trade talks that markets hope will ease tensions between the economic superpowers. Monday's reading included a 12.7 percent plunge in exports to the United States compared with April, when US President Donald Trump unveiled his eye-watering tariffs on China. May's exports to the United States also represented a year-on-year decline of more than one third -- the steepest slide since early 2020. In contrast, customs data showed shipments to Vietnam increased from the previous month. Those to other Southeast Asian countries including Malaysia, Thailand, Singapore and Indonesia all declined slightly after soaring in April, the figures indicated. "The acceleration of exports to other economies has helped China's exports remain relatively buoyant in the face of the trade war," wrote Lynn Song, chief economist for Greater China at ING, noting that shipments to Southeast Asian nations were up 14.8 percent year-on-year. China's overall imports in May dropped 3.4 percent year-on-year, coming up short of the 0.8 percent decline forecast by the Bloomberg survey. Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the trade outlook "remains highly uncertain". He pointed to the impact of "frontloading", when overseas buyers increase shipments ahead of potentially higher tariffs. - Spending slump - Monday's data added to concerns about the Chinese economy, with a report from the National Bureau of Statistics (NBS) showing the consumer price index -- a key measure of inflation -- dropped 0.1 percent year-on-year in May. The reading, which was slightly better than expected but marks the fourth straight month of falling prices, comes as Beijing struggles to boost domestic consumption that has been sluggish since the end of the pandemic. The failure of leaders to kickstart demand threatens their official growth targets and complicates their ability to shield the economy from Trump's tariff blitz. While deflation suggests the cost of goods is falling, it poses a threat to the broader economy as consumers tend to postpone purchases under such conditions in the hope of further reductions. A lack of demand can then force companies to cut production, freeze hiring or lay off workers, while potentially also having to discount existing stock -- dampening profitability even as costs remain the same. - Fresh talks - The London talks will be the second set of formal negotiations between the two since Trump launched his global trade blitz on April 2. They were announced after a phone call last week between Trump and Chinese President Xi Jinping. China and the United States paused sky-high tariffs after the first round in Geneva in mid-May but failed to reach a sweeping trade deal. Zichun Huang, China economist at Capital Economics, said Beijing's export growth was expected to "slow further by year-end" with tariffs "likely to remain elevated". A key issue in Monday's negotiations will be Beijing's shipments of rare earths that are crucial to a range of goods, including electric vehicle batteries, and which have been a bone of contention for some time. Customs figures on Monday showed Chinese exports of rare earth minerals rose last month to 5,865 tonnes from 4,785 tonnes in April. But last month's figure still represented a decline from May last year, when China exported 6,217 tonnes of rare earths. pfc/oho/rsc
